Canadian cannabis producer Canopy Growth reached a deal with noteholders to trade 255.4 million Canadian dollars ($198 million) of debt for shares and cash, thereby reducing a substantial portion of its convertible debt set to mature next year.
According to the arrangement reached with a limited number of noteholders, including parent company Constellation Brands, Canopy will acquire the outstanding 4.25% unsecured convertible senior notes due 2023 in exchange for common shares and approximately CA$3 million in cash.
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The deal effectively means Constellation will own more of Canopy and other shareholders less.
“By addressing a substantial portion of our soon-to-mature convertible debt we are deleveraging our balance sheet, preserving capital, and reducing interest payments by over C$10.9M annually,” Canopy Chief Financial Officer Judy Hong said in a statement to MJBizDaily.
“These actions are critical as we navigate broader economic headwinds and will enable us to continue investing in the
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